Sales-volume threshold
Most states: $100,000 annual sales or 200 transactions. California & Texas: $500,000. Kansas: any sales. Resets every calendar year. Crossing it once registers you indefinitely.
Economic nexus analysis, state registrations, marketplace facilitator law tracking, monthly filings and audit defence. From the Wayfair decision to the present-day marketplace-collection regime, CiDATax navigates the US sales tax landscape on your behalf.
The 2018 Supreme Court decision in South Dakota v. Wayfair, Inc. abolished the physical-presence requirement for state sales tax obligations. Every US state now applies an economic nexus threshold, typically $100,000 in annual sales or 200 transactions, above which non-resident sellers must register and remit sales tax.
Thresholds, filing frequencies, taxability rules and marketplace-facilitator carve-outs all vary by state. The compliance cost of getting it wrong includes lookback assessments, statutory interest and penalties that can exceed the original tax due.
Economic nexus framework per South Dakota v. Wayfair, Inc., 585 U.S. _ (2018)Most states: $100,000 annual sales or 200 transactions. California & Texas: $500,000. Kansas: any sales. Resets every calendar year. Crossing it once registers you indefinitely.
Holding inventory in an Amazon FBA warehouse establishes physical nexus. With 25+ FBA fulfilment centres across the US, Amazon sellers often have nexus they don't know about.
Some states (notably New York, California, Illinois) maintain click-through nexus rules where in-state affiliates paid on a commission basis create nexus for the principal seller.
Every US state now has a marketplace facilitator law making Amazon, eBay, Walmart and similar platforms responsible for collecting and remitting sales tax on third-party sales. This sounds like relief for sellers. It is not.
You still need to register in any state where you exceed economic nexus thresholds. You still need to file regular returns. You report marketplace-collected sales as exempt and remit tax only on direct (DTC) channel sales.
Misreporting marketplace-facilitated sales (claiming them as taxable when they were collected by Amazon, or vice versa) is a common cause of state audit triggers.
Each state runs its own rules on taxability of digital goods, SaaS, clothing, food, and dozens of niche categories. New York taxes clothing under $110 as exempt; Pennsylvania exempts most clothing entirely; California taxes most clothing in full.
CiDATax maintains a continuously updated taxability matrix for client SKUs across all jurisdictions where you have nexus. We re-classify when state rules change, which they do constantly.
Audit defence is included in our retainer for the duration of the engagement.
Book a senior-led discovery call. We will scope your situation, set clear written terms, and put you on a defined timeline.